Discounted Cash Flow (DCF) Analysis Levered

Becton, Dickinson and Company (BDX)

$251.5

+2.00 (+0.80%)
All numbers are in Millions, Currency in USD
Stock DCF: 217.69 | 251.5 | overvalue

Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 15,98317,29017,11720,24818,87019,750.4320,671.9321,636.4322,645.9423,702.54
Revenue (%)
Operating Cash Flow 2,8653,3283,5394,6472,4713,708.893,881.944,063.064,252.644,451.05
Operating Cash Flow (%)
Capital Expenditure -895-957-810-1,231-973-1,070.58-1,120.53-1,172.81-1,227.54-1,284.81
Capital Expenditure (%)
Free Cash Flow 1,9702,3712,7293,4161,4982,638.312,761.412,890.253,025.103,166.25

Weighted Average Cost Of Capital

Share price $ 251.5
Beta 0.565
Diluted Shares Outstanding 292.09
Cost of Debt
Tax Rate 8.30
After-tax Cost of Debt 2.48%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.411
Total Debt 14,763
Total Equity 73,460.38
Total Capital 88,223.38
Debt Weighting 16.73
Equity Weighting 83.27
Wacc

Build Up Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 15,98317,29017,11720,24818,87019,750.4320,671.9321,636.4322,645.9423,702.54
Operating Cash Flow 2,8653,3283,5394,6472,4713,708.893,881.944,063.064,252.644,451.05
Capital Expenditure -895-957-810-1,231-973-1,070.58-1,120.53-1,172.81-1,227.54-1,284.81
Free Cash Flow 1,9702,3712,7293,4161,4982,638.312,761.412,890.253,025.103,166.25
WACC
PV LFCF 2,230.932,208.052,185.412,163.012,140.83
SUM PV LFCF 12,221.10

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.75
Free cash flow (t + 1) 3,229.57
Terminal Value 86,121.87
Present Value of Terminal Value 65,119.58

Intrinsic Value

Enterprise Value 77,340.68
Net Debt 13,757
Equity Value 63,583.68
Shares Outstanding 292.09
Equity Value Per Share 217.69